14 Jun 2013

Fears over impact of impending CNMI retirement fund collapse

8:05 am on 14 June 2013

It has been estimated that the projected collapse of the Northern Marianas Retirement Fund and the resulting loss in annuity for pension members will badly damage the territory's economy.

The Fund says the impact on the economy will amount to more than 52 million US dollars.

It pays about 65 million US dollars each year in annuity payments to over 3,100 recipients, the bulk of whom still live in the CNMI.

Beneficiaries of the government pension programme include retirees, disability recipients, and surviving spouses and their children.

Experts earlier projected that the pension agency will run out of money by March next year unless there is an injection of funds.